Surface Care in India PDF

SURFACE CARE IN INDIA
Euromonitor International
June 2015
LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 2
Category Data .............................................................................................................................. 3
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Sales of Surface Care by Category: Value 2009-2014 ................................. 3

Sales of Surface Care by Category: % Value Growth 2009-2014 ................ 3
NBO Company Shares of Surface Care: % Value 2010-2014 ..................... 4
LBN Brand Shares of Surface Care: % Value 2011-2014 ............................ 4
Forecast Sales of Surface Care by Category: Value 2014-2019 .................. 5
Forecast Sales of Surface Care by Category: % Value Growth 20142019 ............................................................................................................. 6
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HEADLINES
Current value sales of surface care grow by 15% to reach Rs7.9 billion in 2014
Urban consumers are slowly shifting from unbranded to branded surface cleaners
Unit prices of surface care increase by 3-6% in current terms in 2014
Reckitt Benckiser (India) continues to dominate surface care with a value share of 57% in
2014
Sales of surface care are predicted to grow at a CAGR of 5% at constant 2014 prices over the
forecast period, reaching Rs10.1 billion in 2019
TRENDS
Increasing marketing campaigns by established manufacturers and efforts by the government
of India to improve health and hygiene through building awareness designed to change poor
hygiene habits and constructing toilets to stop open defecation helped to increase demand for
surface care in 2014. Private companies have chosen to join in this mission as well as
promote their products, and all these efforts helped surface care brands to grow in 2014.
Current value sales of surface care grew by 15% in 2014, similar to growth seen in 2013.
Aggressive promotional activities and increased consumer awareness regarding effectiveness
of branded cleaners accounts for the continued increase in sales of surface cleaners in 2014.
The market has a wide range of products catering to different needs of consumers from basic
to specialised ones, which helped to extend market boundaries in India in 2014.
Multipurpose cleaners registered the best performance within surface care in 2014, with
current value sales rising by 15%. The usage of multipurpose cleaners in various ways in
housecleaning helped boost sales in 2014.
Unit prices increased by 3-6% in current value for an average of 5%. The growth was mainly
attributed to higher raw material and marketing expenses transferred to end consumers due
to competitive pressures.
Household antiseptics/disinfectants registered the second fastest growth rate in 2014, also
with an increase of 15%. Promotional efforts from players and consumers readiness to spend
on hygiene and cleanliness products have spurred demand for this type of product in the
country.
Window/glass cleaners saw the third fastest value growth in surface care, slightly behind that
of multipurpose cleaners and household antiseptics/disinfectants in 2014, due to the
increasing penetration of electronic appliances. Furthermore, consumers increasingly use
glass cleaners for TVs, refrigerators and for many more appliances, which boosted growth of
window/glass cleaners in 2014.
Standard floor cleaners are commonly used across India and are the most popular, with liquid
being most used floor-cleaning format. However, cleaners that can be used on ceramic tiles
and marble floors are gaining ground on the traditional format as new real estate using these
types of flooring is developing rapidly. As for kitchen and bathroom countertops, natural stone
options such as granite, marble and limestone are popular. Furniture products are often
wooden or laminate, but metallic or even plastic is common in some cases.
The majority of consumers are price sensitive and have limited interested in purchasing
surface care, but a set of middle- and upper-class consumers that are swayed by the
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aspirations of living a good and hygienic lifestyle are readily spending money on maintenance
of specific surfaces.
Liquid is the leading surface care variant, accounting for 80% of total regional volume sales in
2014 as per trade interviews. Trigger sprays is the second biggest constituting around 18%
according to the same source. The remaining is controlled by the traditional powder-centric
variants. That liquids are most preferred and prominent is attributed to consumer preference
towards water-solvent products offering higher quality and ease of use for maids who do the
cleaning.
COMPETITIVE LANDSCAPE
Reckitt Benckiser (India) continued to dominate surface care with a value share of 57% in
2014. The company continued to enjoy a huge portfolio of established brands, including
Dettol, Easy-Off, Lizol and Colin, which provided a platform for sustained growth in 2014.
Huge popularity of the company brands across India and increasing distribution across India
have made company brands popular and helped to maintain their dominant position in surface
care in 2014.
Reckitt Benckiser (India) also registered the largest increase in value share in surface care
overall in 2014, up by a half percentage point over the previous year. Increased distribution
and well-established loyalty towards brands such as Dettol, Lizol and many more helped the
company gain shares in 2014.
Surface care continued to be dominated by international manufacturers, including Reckitt
Benckiser (India), Amway India Enterprises, SC Johnson Products and Hindustan Unilever.
The named multinationals controlled a combined value share of 78% in 2014, although
domestic manufacturers, including private label, registered a moderate value share compared
to the previous year.
In January 2014, Sirus Green Industries introduced the low-cost household disinfectants
brand Felix in South India, priced at Rs20-30 per litre.
In September 2014, Hindustan Unilever extended its flagship brand Domex into bathroom
cleaners with the launch of an advertising campaign in the Times of India that continued for 510 days.
No new packaging innovations occurred within surface care in 2014; however, retailers
combined various home cleaning products and sold them as a solution pack within their
private label lines to help sell their products and to offer attractive price discounts.
Private label surface care products are becoming popular slowly, mainly because of the price
differential and in-store promotions. Some of the popular private label products include 110%
and More Value by More supermarkets, Great Value by Easy Day, Sure Shine by SRS, Clean
Mate by Big Bazaar and Mopz by Reliance Fresh. Such private label products have started to
compete with leading brands, such as Domex.
Green-positioned products continued to be a new concept in India in 2014 with negligible
awareness and little importance placed on them. Neither manufacturers nor consumers were
excited about the environmental impact of surface care products; however, Luxor Nano
Technology launched an eco-friendly surface care product.
PROSPECTS
In the coming years rural India is expected to drive volume growth. Using the national
cleanliness agenda of the government, industry stakeholders have risen to this occasion to
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promote their brands. As of now, rural markets in surface care have been a challenge for
many national players. An increase in the number of toilets in rural India, in itself, is a huge
opportunity. Corporations do not want miss out on this chance to build awareness of their
products and brands in the rural India by helping the government campaign in building toilets
and also focusing on their brand promotions.
Value sales of surface care are expected to increase at a CAGR of 5% at constant 2014
prices over the forecast period. The increasing awareness of health and hygienic conditions
and also increasing urbanisation will help the forecast growth. Furthermore, the increasing
Swachh Bharat campaign across India will also support the growth of surface care during
that time.
The increasing presence of regional and domestic players offering products at lower price
points will be a potential threat for established players.
Multipurpose cleaners will continue to post the best performance in surface care with value
sales expected to increase at a CAGR of 6% at constant 2014 prices over the forecast period.
As previously noted, Indian urban and rural consumers are slowly upgrading from unbranded
to branded surface cleaners which can be used for various purposes in the home.
Windows/glass cleaners is expected to see the second-best performance in surface care with
a constant value CAGR of 5% over the forecast period. The increasing penetration of LED
TVs and glass furniture in both urban and rural India will help window/glass cleaners over the
forecast period.
The average unit price will be reduced slightly year on year mainly due to a greater number of
regional and domestic players entering the surface care field with products offered at low
price points.
In February 2015, ITC acquired J&Js Savlon brand in India. This acquisition will enable
Savlon to reach each corner of India and to offer tough competition for well-established brand
Dettol over the forecast period.
CATEGORY DATA
Table 1
Sales of Surface Care by Category: Value 2009-2014
INR million
Household Care Wipes

and Floor Cleaning
Systems
Bathroom Cleaners
Descalers
Drain Openers
Floor Cleaners
Household Antiseptics/
Disinfectants
Kitchen Cleaners
Multi-Purpose Cleaners
Oven Cleaners
Scouring Agents
Window/Glass Cleaners
Surface Care
Table 2
2009
2010
2011
2012
2013
2014
94.0
273.9
2,498.7
101.8
300.8
2,715.1
109.9
330.8
3,029.1
119.8
361.7
3,425.8
131.7
402.4
3,919.5
147.7
449.1
4,504.2
1,049.8
273.0
4,189.3
1,217.6
299.2
4,634.5
1,439.5
338.6
5,247.9
1,677.0
385.2
5,969.5
1,967.9
446.3
6,867.8
2,270.2
512.0
7,883.1
Sales of Surface Care by Category: % Value Growth 2009-2014
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% current value growth
Household Care Wipes and Floor

Cleaning Systems
Bathroom Cleaners
Descalers
Drain Openers
Floor Cleaners
Household Antiseptics/Disinfectants
Kitchen Cleaners
Oven Cleaners
Scouring Agents
Surface Care
Table 3
2009-14 CAGR
2009/14 Total
12.2
11.6
14.9
15.4
14.7
14.8
9.5
10.4
12.5
16.7
13.4
13.5
57.2
64.0
80.3
116.2
87.6
88.2
NBO Company Shares of Surface Care: % Value 2010-2014
% retail value rsp

Company
Reckitt Benckiser
(India) Ltd
Amway India Enterprises
Pvt Ltd
Hindustan Unilever Ltd
Modicare Ltd
SC Johnson Products Pvt
Ltd
Bengal Chemical &
Pharmaceuticals Ltd
Johnson & Johnson
(India) Ltd
Godrej Consumer
Products Ltd
Hindustan Lever Ltd
Godrej Sara Lee Ltd
Sara Lee Household &
Body Care India Pvt Ltd
Private Label
Others
Total
Source:
2013/14
2010
2011
2012
2013
2014
55.9
57.1
55.9
56.7
57.2
10.6
11.2
10.9
10.6
10.0
7.0
6.3
0.2
6.9
6.2
2.9
7.3
6.0
3.0
7.7
5.6
3.1
8.0
5.4
3.2
2.2
2.1
1.8
1.7
1.6
0.3
0.3
0.2
0.2
0.2
2.5
1.5
13.5
100.0
1.8
11.6
100.0
1.9
13.0
100.0
2.0
12.4
100.0
2.0
12.4
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 4
LBN Brand Shares of Surface Care: % Value 2011-2014
% retail value rsp

Brand
Dettol
Easy-Off
Lizol
Company
2011
2012
2013
2014
Reckitt Benckiser
(India) Ltd
Reckitt Benckiser
(India) Ltd
Reckitt Benckiser
(India) Ltd
32.6
31.5
32.1
32.2
10.9
10.7
10.8
11.0
8.9
9.0
9.1
9.4
Domex
LOC
Hindustan Unilever Ltd

Pvt Ltd
Reckitt Benckiser
(India) Ltd
Modicare Ltd
Pvt Ltd
Ltd
Bengal Chemical &
Pharmaceuticals Ltd
Ltd
Modicare Ltd
Pvt Ltd
Ltd
Johnson & Johnson
(India) Ltd
Godrej Consumer
Products Ltd
Godrej Consumer
Products Ltd
Godrej Sara Lee Ltd
Godrej Sara Lee Ltd
Hindustan Lever Ltd
Sara Lee Household &
Body Care India Pvt Ltd
Private Label
Colin
Duz-All
Pursue
Kiwi Kleen
Phenol
Mr Muscle
HD
See Spray
Kiwi
Savlon
Kiwi
Kiwi Kleen
Kiwi
Kiwi Kleen
Domex
Kiwi Kleen
Private label
Others
Total
Source:
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6.9
8.2
7.3
8.0
7.7
7.9
8.0
7.4
4.7
4.7
4.7
4.7
5.3
2.4
5.2
2.3
4.8
2.1
4.7
2.0
2.0
1.9
1.8
1.7
2.1
1.8
1.7
1.6
0.7
0.9
1.2
1.3
0.9
0.6
0.8
0.6
0.8
0.6
0.8
0.6
0.3
0.2
0.2
0.2
0.3
0.2
0.2
0.2
1.8
11.6
100.0
1.9
13.0
100.0
2.0
12.4
100.0
2.0
12.4
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 5
Forecast Sales of Surface Care by Category: Value 2014-2019
INR million
Household Care Wipes

and Floor Cleaning
Systems
Bathroom Cleaners
Descalers
Drain Openers
Floor Cleaners
Household Antiseptics/
Disinfectants
Kitchen Cleaners
Oven Cleaners
Scouring Agents
Surface Care
Source:
2014
2015
2016
2017
2018
2019
147.7
449.1
4,504.2
152.2
460.0
4,773.6
156.2
469.7
5,041.2
159.8
478.9
5,310.6
162.4
486.1
5,558.2
163.8
490.9
5,769.9
2,270.2
512.0
7,883.1
2,415.4
541.6
8,342.7
2,564.4
570.8
8,802.4
2,720.7
600.7
9,270.6
2,868.9
628.5
9,704.2
3,004.5
652.3
10,081.4
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 6
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Forecast Sales of Surface Care by Category: % Value Growth 2014-2019
% constant value growth
Household Care Wipes and Floor

Cleaning Systems
Bathroom Cleaners
Descalers
Drain Openers
Floor Cleaners
Household Antiseptics/Disinfectants
Kitchen Cleaners
Oven Cleaners
Scouring Agents
Surface Care
Source:
2014/2015
2014-19 CAGR
2014/19 TOTAL
0.9
1.0
3.8
4.7
3.8
3.9
2.1
1.8
5.1
5.8
5.0
5.0
10.9
9.3
28.1
32.3
27.4
27.9
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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SURFACE CARE IN INDIA